Afternoon Market Highlights


Highlights

Grain markets were on the defensive after lack of details surrounding “Phase I” of the US/ Chinese trade deal announced last Friday.  There are a lot of unknowns that remain, and details are not really forthcoming yet. Prices were also pressured from a bout of profit taking.      

  • CHS Hedging is offering an “Introduction to Technical Trading” class on January 10th and “Energy Hedging I & II” classes on January 23rd at the Inver Grove Heights office.Check the website for registration and agenda at www.chshedging.com.
  • The energy markets are mixed with crude oil down 68 cents at $52.91/barrel.
  • The US$ is 165 weaker at 98.28, the gold market is down 12-13 bucks at $1,480/ounce and the CD$ is up 0.00155 at 0.75795.
  • DJIA up 237 at 27024, S&P up 31 at 2997 and the NASDAQ up 100 at 8148. 

Corn

The corn market traded lower on lack of fresh supportive news. Prices drew additional pressure from a bout of profit taking and worries about future Chines purchases. Temperatures are warming up, the sun is poking out across the Upper Midwest, which should help the corn crop do its thing.  There are ideas that the USDA may have pegged the corn crop fairly well and that the corn crop will dry down and be there for the farmer to harvest. 

  • Closes: December at $3.93 ¼, down 4 ½ cents, July at $4.15 ¼, down ¾ cent, September at $4.06 ¼, down ¼ cent, red December at $4.08 ¾, down ¾ cent.
  • The corn crop was rated at 73% mature, compared to 92% on average. Harvest progress was reported at 22% complete compared to 15% last week.
  • Weekly export inspections came in at 471 tmt, near the low end of the trade estimates (400-700 tmt).
  • Spreads: Z/H 10 ¾ carry, H/K 6 ¼ carry, Z/N 21 ¾ carry, Z/Z 15 ½ carry, N0/Z0 6 ¼ inverse. 

Oilseeds

Soybean prices saw a bout of profit taking on uncertainty about the details of the US/Chines Phase I trade deal.  Harvest progress continues in parts of the ECB while much of the WCB waits for the fields to dry out enough to go scooting across and harvest their soybeans. 

  • Closes: November at $9.34, down 6 ½ cents, January at $9.48 ½, down 6 ½ cents, July at $9.76 ¼, down 4 ¼ cents, red November at $9.72 ½, down 1 cent.
  • NOPA crush for September showed 152.566 million bushels of beans crushed, well below 162.135 mb, which is what the trade was expecting.
  • The soybean crop had dropped 85% of its leaves through Sunday, October 15. Harvest progress was reported at 26% complete versus 14% last week.
  • The USDA announced the sale of 143k tonnes of beans to an unknown destination for the current marketing year.
  • Weekly export inspections were reported at 958 tmt, near the middle of the trade estimates (700 tmt-1.3 mmt).
  • Spreads: X/F 14 ¼ carry, 70% of full carry at 20 ¾ cents. Consider rolling short hedges to the Jan at current levels.  

Wheat

Wheat prices were lower on lack of fresh supportive news, weakness in the row crops and a bit of technical selling. Winter wheat seedings may get delayed or not seeded at all this year, as the fields are too wet to get the row crops harvested. Duluth stocks increased 1.6 million bushels to 20.438 mb. Mpls stocks increased 238k bushels to 4.958 mb. 

  • December closes: Mpls at $5.45 /2, down 6 ½ cents, KC at $4.20 ½, down 5 ¼ cents, Chicago at $5.07, down 4 cents.
  • Weekly export inspections came in at 463k tonnes, mid-range of trade estimates (300-600 tmt).
  • Egypt’s GASC is in the market for optional origin wheat for LH Nov shipment.This comes after they stated they were well covered for the next several months.
  • Winter wheat seedings were reported at 66% complete, up form 52% seeded last week.
  • Spring wheat harvest was up 3% from last week at 94% complete.
  • Spreads: Mpls Z/H 14 ¼ carry, Z/Z 47 ¼ carry, Kansas City Z/H 13 carry, Z/Z 56 ½ carry, Chicago Z/H 6 ½ carry, Z/Z 32 ½ carry.